Atlantic lithium joins GSE
-In landmark listing of shares worth GH₵649.6m
By Elvis DARKO, Accra
Australian-based Atlantic Lithium Limited, the entity overseeing the Ewoyaa Lithium Project in the Central Region to develop Ghana’s first lithium mine, has moved toward raising capital from equity investors in Ghana.
The company has listed all its shares on the Australian Securities Exchange and London Stock Exchange’s AIM board, on the Ghana Stock Exchange, by offering shares valued at GH₵649.6 million (GH₵649,669,053).
The company’s prospectus sets the indicative price for the GSE listing at GH₵4.40, reflecting the valuation from the Primary Listing Market.
The company clarified that it will not place or issue any new Atlantic Lithium shares in connection with its GSE listing, and admission will have no impact on its existing listings on Australia’s ASX or the London Stock Exchange’s AIM.
The Ewoyaa mine is expected to become the continent’s third-largest hard-rock lithium project.
Parliamentary approval
The next steps for Atlantic Lithium include the ratification of its 15-year mining lease by Ghana’s parliament and a final investment decision.
Minister for Lands and Natural Resources, Samuel Abu Jinapor, hailed the listing of Atlantic Lithium’s shares on the GSE as a landmark event, signaling a paradigm shift in the exploitation of Ghana’s mineral wealth.
Speaking at the listing ceremony, Mr. Jinapor emphasized that Atlantic Lithium’s presence on the GSE aligns with the government’s strategic vision of indigenizing the mining sector and enhancing value addition.
He highlighted that the GSE listing satisfies a pivotal requirement outlined in the pact between the state and the firm, thereby ensuring Ghanaian proprietorship of the Ewoyaa Lithium endeavor.
The Minister further noted that the GSE listing exemplifies the government’s dedication to positioning Ghanaians at the forefront of the mining industry, especially within the large-scale mining domain.
“This is to fulfill one of the very important commitment made by the brokers of the transaction reached between the government of Ghana and Atlantic Lithium and their subsidiary, Bavari DV. There have been a lot talks about how the mineral resources of Africa and Ghana has not benefitted the owners of the resources. The reason why it has been so is because we’ve not been able to indigenize the sector and add value to the resources.
“This is the first building blocks indigenizing the mining sector of our country, exploitation of green mineral resources and indigenizing what Atlantic Lithium is coming to do in Ghana.
“This is to make sure that Ghanaians have a stake in what they are coming to do here. It will mean that Ghanaians can participate in the project. It will ensure that Ghanaians can own share and become stakeholders of this mining establishment,” he said.
Neil Herbert, the Executive Chairman of Atlantic Lithium, stated that the company’s decision to trade on the Ghana Stock Exchange reflects its commitment to contributing to Ghana’s effort to fight climate change.
He said “We believe that the company’s listing on the GSE is a true reflection of Ghana’s commitment to playing its part is the fight against climate change by sanctioning long-term lithium production”.
Minerals Commission excited
Chief Executive Officer of the Minerals Commission Martin Ayisi, expressed excitement about the significant events that the next three years would witness in Ghana, starting with Atlantic Lithium’s listing.
He emphasized that this marks a new chapter in Ghana’s mining sector and aligns with the government’s cardinal policies.
GSE MD welcomes the listing
Managing Director of GSE Abena Amoah, acknowledged the contributions of key persons and organizations, including the Minerals Commission, Ministry of Lands and Natural Resources, Chamber of Mines, and the Minerals Income Investment Fund (MIIF), towards the deal.
She expressed the GSE’s readiness to work with Atlantic Lithium on a follow-on offering to raise capital from Ghanaian investors.
“We look forward to working with you on a follow-on offering where the company raises capital by selling shares to Ghanaian investors as you build out your mine,” Amoah said.
About the Ewoyaa Project
Atlantic Lithium’s Ewoyaa Project, set to commence construction in the latter half of 2024, is expected to significantly contribute to the global lithium supply.
365,000 tonnes of spodumene concentrate
With an annual production of 365,000 tonnes of spodumene concentrate, it will be among the world’s largest spodumene mines.
Atlantic Lithium was granted a mining lease in respect of the project in October 2023 comprising the proposed Ewoyaa Lithium Mine and Processing Plant.
MIIF investment
In January, the company welcomed Ghana’s mineral sovereign wealth fund (MIIF) as a new major, strategic shareholder following a $5 million investment in Atlantic by way of a share subscription.
The investment, which formed the first stage of MIIF’s proposed total $32.9mn investment in the company and its Ghanaian subsidiaries.
In line with the second stage of the strategic Investment, subject to Atlantic reaching a binding agreement with MIIF, the Ghanaian fund has agreed to invest a further $27.9mn in the company’s Ghanaian subsidiaries that hold its lithium interests in Ghana, to acquire a 6% contributing interest in the Ghana portfolio, inclusive of the project.
Half of Ewoyaa’s output is earmarked for a refinery that Piedmont Lithium Ltd., which supplies Tesla Inc. and LG Chem Ltd., plans to build in Tennessee.
Piedmont, which has agreed to provide most of the funds to build the mine, is Atlantic Lithium’s second-largest shareholder, followed by Ghana’s sovereign minerals fund MIIF.
Black Star Brokerage Limited serves as the Sponsoring Broker and Arranger, with JLD & MB Legal Consultancy acting as the Legal Advisor, SCG Chartered Accounts as the Reporting Accountants, Central Securities Depository (GH) LTD as the Registrar and Depository, and SRK Exploration Services LTD as the Geological Consultants for the listing.
